Changing Dynamics Of Financial Management-B.V.Raghunandan
1. Changing Dynamics of Financial Management Bhandarkar’s College, Kundapura August 19, 2008
2. Conventional Financial Management Passive Role Stock market was a Small part Limited Sources of Finance Fixed Nature of Financial Instruments Limited Funds Availability No High Networth Individuals (NHI) Projects & Corporate Preferences decided Quantum of the IPO
3. Change Agents Reducing Tax Rates Lesser Benefit of Leverages More Realisation of the Dangers of Debt Islamic Investment Reforms of Financial Markets IT Absorption & Networking Proactive Role by Central Bankers
4. Specific Developments-I Financial markets Insurance markets Risk Management Banking Reforms Emergence of Venture Capital Setting up of Private Equity & Reemergence of Partnership as a Powerful Organisational Structure
5. Specific Developments-II HNI Emergence of Developing Nations Technology Oriented markets Higher Educational Levels Risk Taking Individuals & Households Explosive Growth of Entertainment and News Media Internet and Mobile Communication
6. Resultant Benefit Larger Body of Investors in Corporate Securities Innovative Investment Products Corporates Seeking better Visibility through Corporate Advertisement and other Means Huge Value and Unlocking Value of Equity Financial Management seen through the Eyes of Stock Market and IPO
7. Equity Shares as a Source of Finance Shift in Favour Equity Shares Size of IPO decided by Market Appetite rather than the requirement of the Corporate Corporates becoming Active in the Share Price Monitoring Corporates Responding to the Share Price Movement Sourcing Finance from International Market Quarterly Publication of Results
8. New Age IPOs High Share Premium Book-Building Universal Brokerage Computerised & Networked Operations Shorter Period for Allotment Mutual Funds and Other Institutional Investors Demat Holding
9. New Age Stock Market Longer Hours of Trading Universal Membership Totally Computerised & Networked Operations Shorter Settlement Cycles Derivatives for Risk Management Activism of Listed Companies Public Sector Participation Professionalism at Every Level Foreign Funds (FII)
